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    Why leverage turned the AI chip sell-off into a market rout as leveraged ETFs and margin calls deepened losses

    Neha Kumari
    By Neha KumariJuly 30, 2026

    Semiconductor stocks have been under heavy pressure in recent weeks as investors rushed to sell AI-related stocks. But those who used leverage—through borrowed money or leveraged ETFs—have suffered much steeper losses, turning a chip sell-off into a broader market rout.

    Why leveraged AI chip ETFs fell much more

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